Regulatory Update

Posted on February 5, 2016 by Stephanie Bergeron Perdue

Back when I initially started this blogging exercise for a 1/11 posting, I had a clever title in mind: WIS 2016?  (aka What’s in Store 2016?)  But now it’s February.  And I even missed the filing deadline for a Groundhog’s Day-related theme.  BTW, for those who may NOT have heard, Punxsutawney Phil and Staten Island Chuck failed to see their shadows.  Early spring.  Ah, perhaps I should go with a thawing theme as in when will there be any definitive outcomes for some of our favorite environmental issues?  And I commit to use as many abbreviations and acronyms as possible. 

1)      CPP – No foreseeable thaw.

If I could use a symbol, kind of like the artist formerly known as Prince, I would.  What’s that?  Surely you jest.  CPP is THE Clean Power Plan.  At any rate, way back in January 2016, the D.C. Circuit denied the various Motions to Stay this controversial rule.  And then there was the Stay Application filed by the 26-state coalition, led by West Virginia, and industry types in the SCOTUS.  DOJ/EPA has until 2/4 to respond; the States are expected to file a reply 2/5.  What’s at stake?  Regulating emissions from existing power plants under FCAA 111(d) in a, well, unprecedented manner.  Yes, Texas is one of the states challenging the rule.  Let’s momentarily set aside the fact that the rule deals with power plants and focus solely on the structure of the regulation – hence my use of the term unprecedented.

2)      NAAQS (pronounced naks), more specifically ozone – No foreseeable thaw.

Yes, the October 2015 EPA regulation was also challenged by multiple groups and states, including Texas/TCEQ which filed its Petition for Review on 12/23/2015.  The rule proposal ranged from 65 ppb to 70 ppb; 70 ppb was the final number which lowers the standard 5 ppb from the last revision in 2008.  Statements of Issues for the case are due 2/4/2016. State designations for attainment/NA are due October 2016.  The attainment deadlines are from 2020 to 2037, depending on the classification.  What will you be doing on Groundhog’s Day 2037??

3)      WOTUS (pronounced wo-tus) – Some thaw, mostly muddying the water.  (Sorry)

EPA’s final “Clean Water Rule: Definition of Waters of the United States” was published on 6/29/2015.  Fast forward to 12/8/2015 on which date oral argument was held in the 6th C. COA. I am stepping over the N. Dakota litigation as well as litigation pending in Galveston, Texas. At the moment, there is a nationwide stay against the rule courtesy of the 6th C.  This is in effect while the court sorts out the jurisdictional issue as to whether the rule should be challenged at the federal district court level or appellate level.  BTW, I don’t really like to refer to this rule as WOTUS.  I know, it rhymes with SCOTUS and POTUS. How ‘bout U.S. waters or federal waters?  Most people would still look at us, like, what the heck are they discussing?  That’s a nice segue to note that this federal rule clarifies (ahem) what waters are subject to regulation under federal law, i.e. the CWA.  I’m not sure bright (shore)lines are on the horizon.

4)      EPA SSM SIP Call – Thaw

I had to say thaw for some variety.  And compared to above matters, this case is actually further along.  This rule deals with the use of an affirmative defense in emission event cases and applies to 36 states, including Texas.  (I should mention that Texas’ rules are SIP approved and withstood challenge in the 5th C. COA. Yes, Texas is challenging.)   Briefing is due between 3/6/2016 and 9/4/16; oral argument is anticipated in late November or early December 2016.  I’m refusing to spell out SSM SIP because it makes me feel like I am a knowledgeable insider.

Sorry, The Pollywogs Win and Your Crops Lose

Posted on February 3, 2015 by James Palmer Jr.

Lawyers who regularly practice in the realm of the Clean Water Act (the “Act”) well know that the fight causing the most widespread panic in the regulated community for many months has been the joint proposal by EPA and the Corps of Engineers to amend the definition of “Waters of the United States.”  Even though the agencies jointly withdrew the proposal on January 29, 2015, water lawyers and their clients shouldn’t let their guards down, because another inevitable regulatory slugfest is coming, and it will be over water use. 

In its original form in 1972, the Act contained a concise “savings clause”   that was intended to keep EPA from meddling with the authority of the States to determine how water resources will be allocated for beneficial uses. Section 510(2) simply states:  “Except as expressly provided in this chapter, nothing in this chapter shall be construed as impairing or in any manner affecting any right or jurisdiction of the States with respect to the waters (including boundary waters) of such States.” 

Wyoming Senator Malcolm Wallop became very concerned that the Section 510(2) “shield” wasn’t strong enough to protect the States, so he successfully led to passage in the 1977 amendments to the Act a much more robust policy statement, which was codified as Section 101(g), as follows:

It is the policy of Congress that the authority of each State to allocate quantities of water within its jurisdiction shall not be superseded, abrogated or otherwise impaired by this chapter. It is the further policy of Congress that nothing in this chapter shall be construed to supersede or abrogate rights to quantities of water which have been established by any State. Federal agencies shall co-operate with State and local agencies to develop comprehensive solutions to prevent, reduce and eliminate pollution in concert with programs for managing water resources. 

On its face, the Wallop Amendment appears to be “bulletproof,” but at best  it’s really just “bullet resistant.” On November 7, 1978, EPA Assistant Administrator for Water and Waste Management Thomas Jorling and General Counsel Joan Burnstein issued to all Regional Administrators an “interpretive memorandum,” which concluded that the Wallop Amendment does not absolutely prohibit legitimate use of the Act for water quality purposes, even if water rights and water usages allowed under State laws are negatively affected.  While noting that Section 510(2) remained unchanged in the 1977 amendments, Jorling and Burnstein grounded their legal analysis principally in passages from Senator Wallop’s floor statement in support of his proposed amendment. Specifically, Senator Wallop acknowledged that implementation of water quality standards requirements, among other major features of the Act, might “incidentally” affect individual water rights, and that the purpose of his amendment was “to insure that State allocation systems are not subverted, and that effects on individual rights, if any, are prompted by legitimate and necessary water quality considerations.”

So, thus was born what could loosely be called the “legitimate and necessary” test for determining what is, or is not, an “incidental” effect on State-conferred water rights resulting from implementation of water quality programs arising under the Act. But, without further definition, the scope of this determination brings to mind another (and historic) subjective test – the language in the 1964 Supreme Court decision in the Jacobellis obscenity case, in which Mr. Justice Potter Stewart, in his Concurring Opinion, wrote: “I shall not today attempt further to define the kinds of material I understand to be embraced within that shorthand description ["hard-core pornography"], and perhaps I could never succeed in intelligibly doing so. But I know it when I see it….”

In 1994, the Supreme Court essentially applied the Wallop Amendment test  in its P.U.D. No. 1 vs. the Washington Department of Ecology decision.  There, as a condition for the issuance of a Water Quality Certification under Section 401 of the Act, the State required a proposed hydroelectric dam to pass through certain minimum flows to protect downstream fisheries.  In holding for the State, the Court cited Senator Wallop’s floor statement and summarily rejected the argument that Sections 101(g) and 510(2) limit the reach of the Act to water quality issues only.

Considering the legislative history of the Wallop Amendment, the 1978 Jorling-Burnstein interpretive memorandum, and the Supreme Court’s decision in  the 1994 P.U.D. No. 1 case, there is understandable angst that EPA (or anybody else, for that matter) will use one or more of the three bedrock water quality factors in Section 101(a) of the Act (i.e. chemical, physical, and biological) as offensive weapons to limit or block State water allocation proposals.  Simply put, the scientific premise would be that instream ecosystems can be degraded by depleting flows below the point at which sustainability of these resources is compromised, thus causing or exacerbating a violation of the biological component of the established water quality standards at the proposed point of withdrawal.  (Of course, antidegradation requirements would also be in play.)

On January 7, 2015, EPA sent to the Office of Management and Budget for regulatory review the proposed Final Rule in the recent Water Quality Standards Program rulemaking, and EPA projects that the Final Rule will be published in May 2015.  To say the very least, these major changes will make even more vexing the already difficult quantity-quality, federal-state tensions over how water use allocation decisions are made at the State level.

To close this review, it must be noted that, as mentioned in the 1978 Jorling-Burnstein interpretive memorandum, some States have water allocation programs in which the impacts on water quality of a proposed withdrawal must be carefully considered.  For example, in Mississippi, the statute authorizing the issuance of surface water withdrawal permits explicitly states: “No use of water shall be authorized that will impair the effect of stream standards set under the pollution control laws of this state based upon a minimum stream flow.” An appropriate case in point arose in early 2014, when a permit was sought to withdraw significant volumes of water for row crop irrigation purposes from a major stream in the Mississippi Delta.  A citizens group opposed the permit proposal, contending that further withdrawals from that particular stream should not be allowed until a biological sustainability study was performed and then used as the ultimate determinant in considering applications for additional withdrawals.  The citizens group and the applicant for the permit struck a compromise, but the fundamental questions about the impacts of such withdrawals on water quality remain.

Given the extended droughts in certain regions of the United States in recent years, the ever tightening laws and regulations governing both water quantity and water quality, and the reality of growing demands for water seemingly everywhere, “water wars” (both intrastate and interstate) will likely erupt more frequently as time goes by.  And, in those States that have little or no statutes, regulations, and administrative procedures to work with, the fundamental questions for individuals and organizations (public and private) who want to oppose proposed water withdrawals, regardless of the intended beneficial use, will be what forum to use and what principles of law to assert. One thing is certain – seasoned water lawyers will likely see more business coming their way.

WATERS OF THE U. S. PAPER RELEASED BY ECOS

Posted on September 17, 2014 by Blogmaster

On Monday, the Environmental Council of the States (ECOS)  publicly announced a memorandum prepared by ACOEL members concerning  a controversial rule proposed by EPA and the Army Corps of Engineers to clarify jurisdiction over “waters of the United States.” In May 2013, ACOEL entered into a Memorandum of Understanding with ECOS to facilitate a relationship pursuant to which members of ACOEL will provide assistance on issues of interest to ECOS. 

Since the Supreme Court decision in Rapanos v. United States, there has been significant discussion regarding the scope of Clean Water Act jurisdiction.  In order to facilitate its members’ ability to comment on the proposed rule, ECOS requested that ACOEL members provide an objective analysis of how Rapanos has been interpreted to date and how the proposed rule might modify existing understanding of the term, if at all.  A diverse group of ACOEL members from academia, private law firms, and public interest groups volunteered and produced the attached comprehensive memorandum, which was made publicly available today by ECOS. 

In announcing the memorandum, Dick Pedersen, the President of ECOS and Director of the Oregon Department of Environmental Quality, thanked the members of ACOEL for their significant time and effort in preparing the “very informative” memorandum, and added that ECOS looks forward to working with ACOEL in the future.  ACOEL hopes that this memorandum will serve as a valuable resource in connection with EPA’s anticipated rulemaking efforts in this area. 

This is the second white paper produced by ACOEL members to aid ECOS members in assessing important federal environmental policy initiatives.  The first concerned implementation of section 111(d) of the Clean Air Act.